[2025] FWC 2805
General information, not legal advice.
Fair Work Commission
2025-09-19
Original judgment source is linked above.
[2025] FWC 2805 [Note: An appeal pursuant to s.604 (C2025/9912) was lodged against this decision.]
s.120 - Redundancy pay
Utility Mapping (Aust) Pty Ltd Trading AS Utility Mapping
Application to vary redundancy pay - acceptable alternative employment - principles regarding exercise of discretion to reduce redundancy pay - no loss of remuneration - reduced seniority - acceptable alternative employment - finding that the employer did obtain acceptable alternative employment for the employee - remedy - discretionary relief -application granted.
(a) during general discussions about Mr Jones' career ambitions in 2023 Mr Jones expressed an interest in taking on a National Operations Manager role as an upward progression from his State Manager role;
(b) Mr Jones and Mr Westaway met in April 2025 and discussed a national role;
(c) Mr Jones was asked to write a job description for a national role, and he sent Mr Westaway the same position description that he had drafted in 2023;
(d) Mr Jones met with Matt Keppich (General Manager - East Coast) in May 2025 about a national technical role. Mr Jones said that Mr Keppich informed him that the National Technical role would be presented to him as an option and if he did not accept it he would continue in the State Manager role. Mr Keppich did not give evidence in the proceedings;
(e) Mr Jones also said that he was told by Mr Keppich that there would be frequent travel, probably on average at least one week per month;
(f) on 30 May 2025 Mr Jones received a letter from Mr Linton informing him of a variation to his employment contract following "an evaluation of [Utility Mapping's] organisational structure" and to "improve resource allocation within the business", that the variation was effective immediately, and that his role "has been transitioned to report to a new manager";
(g) on 2 June 2025 Mr Jones met again with Mr Keppich and in that meeting there were raised voices. Mr Jones said he was told in this meeting that the changes to his role were voluntary. Mr Jones asked for confirmation from HR that the changes were voluntary;
(h) later that day Mr Jones received an email inviting discussion about his position of State Manager becoming redundant;
(i) after a meeting on 3 June 2025 Utility Mapping provided a position description for the new role, a redundancy matrix and Mr Jones was told he would receive information about his new bonus and KPI arrangements;
(j) the position description for the proposed role was similar to the position description Mr Jones and previously provided but contained significant differences;
(k) in a final meeting on 6 June 2025, and after receiving legal advice, Mr Jones read the following prepared statement:
"Thank you for the offer of redeployment as national technical lead role after making my role as Victorian State Manager redundant.
After careful consideration I must respectfully decline the offer on the basis that the proposed position is not a suitable alternative employment as per Fair Work Act"
(l) Mr Jones' hand-written notes of his prepared statement included the following additional prompts:
"(still no bonus KPI for role)
I believe I remain entitled to my full redundancy entitlement in accordance section 119 of the Fair Work Act."
Manage and oversee the daily operations and performance of the branch
Support the daily operations and performance of all branches to align with strategic business goals
Assist in the management of workflow and assignment of projects and coordinating resources
Manage workflow, project assignments, and national resource coordination to maximise efficiency and utilisation
Working closely with the finance team to prepare budgets and manage expenditure
Collaborate with Operational Management on budgeting, financial performance monitoring, and technical expenditure control
Developing business by growing existing clients and engaging new clients
Expand the client base and maintain strong relationships with key stakeholders
High level of leadership, people management and communication
Provide high level technical leadership and trouble-shooting support on complex or underperforming projects
Regular monitoring and review of field employees' competency, processes and progress
Mentor and support Team Leaders, Field Managers, and Surveyors in technical and operational performance.
Monitor and assess technical field staff performance, including regular site inspections to ensure adherence to company and safety standards
(a) less budgetary responsibility, and no formal strategic involvement;
(b) a reduction in contractual working hours from 40 to 38, resulting in lower superannuation contributions;
(c) an expectation to work overtime with no additional compensation;
(d) no defined KPI or structured bonus system, impacting the ability to earn performance pay;
(e) a significant increase in interstate travel with no compensation or allowance; and
(f) a negative impact on family responsibilities due to travel requirements.
"After careful consideration I must respectfully decline the offer on the basis that the proposed position is not a suitable alternative employment as per Fair Work Act"
(1) An employee is entitled to be paid redundancy pay by the employer if the employee's employment is terminated:
(a) at the employer's initiative because the employer no longer requires the job done by the employee to be done by anyone, except where this is due to the ordinary and customary turnover of labour; or
(b) because of the insolvency or bankruptcy of the employer.
(a) an employee is entitled to be paid an amount of redundancy pay by the employer because of section 119; and
(i) obtains other acceptable employment for the employee; or
(2) On application by the employer, the FWC may determine that the amount of redundancy pay is reduced to a specified amount (which may be nil) that the FWC considers appropriate.
(3) The amount of redundancy pay to which the employee is entitled under section 119 is the reduced amount specified in the determination."
(a) the acceptability of the alternative employment is generally regarded to be an objective question to be answered by reference to objective factors;
(b) the fact that an employee accepts or does not accept the alternative employment is not necessarily determinative of whether the employment was 'acceptable' for the purposes of s.120;
(c) the FW Act creates a prima facie right to redundancy pay as a national employment standard if the conditions in s.119(1)(a) are satisfied;
(d) applications under s.120 must be considered from the perspective that any reduction ordered is a derogation from legislated minimum safety net standards that the FW Act otherwise applies to all contracts of employment;
(e) the origin of s.120 lies in the decision of the Full Bench of the Conciliation and Arbitration Commission in Termination, Change and Redundancy Case [1984] CthArbRp 284; (1984) 8 IR 34 to introduce an entitlement to severance pay for all employees under federal awards whose employment had been terminated because of redundancy;
(f) a determination under s.120 is not to be made in a vacuum and must consider factors such as whether the work is of a like nature; whether the location of the employment being offered is not unreasonably distant; whether the pay arrangements comply with award requirements; the hours of work; seniority; fringe benefits; workload and speed; and job security;
(g) the evidentiary burden falls upon on the applicant employer to provide evidence as to the provision of acceptable employment;
(h) in determining whether the employment is acceptable the Commission must consider the circumstances of the employee;
(i) alternative employment might be acceptable even if its terms are less advantageous;
(j) one objective test of acceptability is to consider whether the alternative work bears a sufficient comparability to the original work and is not unreasonably removed from the employee's original duties, skills set, qualifications, experience and other terms and conditions of employment;
(k) alternative employment might not be acceptable if there is not sufficient connection to the employee's demonstrated skill set and experience, or if the new employment places the employee in more precarious circumstances overall than if their former duties were still available;
(l) on its face the expression "other acceptable employment" is not confined to employment with another employer;
(m) section 120(1)(b)(i) is not concerned with the reasonableness of the employer's conduct, but only with the acceptability of the employment obtained by the employer. The reasonableness of the employer's conduct might be relevant to the exercise of discretion to provide relief;
(n) for an employer to avail itself of s.120, the other acceptable employment must be 'obtained' and offered to the employee while she or he is still employed by that employer;
(o) information and even misinformation provided to employees is irrelevant to the threshold question of whether the alternative employment is acceptable, but might be relevant to the exercise of the Commission's discretion; and
(p) the employee's willingness to meaningfully engage with the employer's various offers of reemployment may affect the exercise of the Commission's discretion.
"The conclusions we have reached are based on an examination of the total evidence given by each witness. Each of the employees advanced reasons for not pursuing alternative employment. Having considered the evidence we have concluded that there are six former employees who should not be the subject of any exemption. They are Mrs M Konstantinidis, Mrs V Lotsas, Mrs T Milias, Mrs L Bogdanovski, Muoi Honh Kok and Mrs V Stogcevska. Each of these persons has circumstances which would, on an objective basis, preclude the alternative employment from being held to be acceptable. As to each of the other persons we find that the reasons for rejecting the opportunity were such that the test is not satisfied. We are unable to find in the context of the overall evidence given by these employees that these reasons are anything but subjective and pay no regard to the reasonable expectation that an employee would seek to minimise the hardship which may arise from the threatened redundancy."
Did the employer obtain acceptable alternative employment?
"... I was completely supportive of keeping Alex in the business [and] do whatever we needed to do [to keep him] ... look even today I'd always employ Alex. I like what Alex does and I like Alex in the business, and we were trying to help shape the role to what Alex wanted. It's as simple as that."
[1] Broadlex Services Pty Ltd v United Workers' Union [2020] FCA 867. (2020) 296 IR 425, Berkeley Challenge Pty Ltd v United Voice [2020] FACFC 113, (2020) 297 IR 397, Broadlex Services Pty Ltd v United Workers' Union [2020] FCA 867; (2020) 296 IR 425 at 435, [2020] FCA 867 at [49].Australian Commercial Catering Pty Ltd v Fair Work Commission [2015] FCAFC 189, (2015) 235 FCR 441, FBIS International Protective Services (Aust) Pty Ltd v Maritime Union of Australia [2015] FCAFC 90, (2015) 232 FCR 1, (2015) 250 IR 476
[2] Get Started Pty Ltd v Matthew Lee [2018] FWC 3295, Datacom Systems Vic Pty Ltd v Rasiq Khan; Siddharth Desai [2013] FWC 1327, NUW v Tontine Fibres [2007] AIRCFB 101, Von Bibra Robina Autovillage Pty Ltd [2007] AIRC 397, Australian Chamber of Manufacturers and Derole Nominees Pty Ltd - Clothing Trades Award 1982 [1990] AIRC 980; (1990) 140 IR 123, Clothing and Allied Trades Union of Australia v Hot Tuna Pty Ltd (1988) 27 IR 226, Termination, Change and Redundancy Case [1984] CthArbRp 284; (1984) 8 IR 34
Printed by authority of the Commonwealth Government Printer
(1984) 8 IR 34
(1990) 140 IR 123
(2020) 296 IR 425
(2020) 297 IR 397
(2015) 235 FCR 441
(2015) 232 FCR 1
(2015) 250 IR 476
(1988) 27 IR 226